Four Walls of Personal Finance You Should Know

Personal finance is one of the simple yet complicated topic. You would find that each of the concept in the personal finance is associated with our everyday need. And that is what comes under the topic of finance.

So today I want to cover those basic needs under the personal finance. It's one of those personal finance needs that are often not covered because they are basic and people take for granted.

We think we know about them and we take them granted and don't plan or budget for the same. So here my approach is to teach you how those topics can be achieved. So let's discuss that today.

At the end of this article you would get an idea on these strong walls of the personal finance that you would be able to understand and cover in the financial life.

Food

One of the daily need and we take that for granted till the point where the money and the hunger is what shows us the value of the food. You would love having the comfort of food all your life.

However the thing is that this is one of those basic necessities which you have to cover properly in the life. And not take it for granted. Your jobs, your chase for the life would make you ignore the important part - food.

You have to make sure to put some funds aside for the food. That would help you understand how the money is being spent on the food. Make sure to plan your expenses of food properly as well.

Shelter

Have you ever lived your life in rented apartments? I am sure you did. And that is where the shelter part is coming. You have to understand that shelter is how you choose to plan your stay.

A lot of times having a rented apartment is fine. But as you start ageing you have to plan for the shelter. Like you have to get your own house or maybe even the rooms in some apartment. That would keep you in line.

You can also plan thinking your old age and also the amount of the planning that you do with the finance would let you understand where you are going to take flat or houses and how you plan the old age.

Clothing & Utilities

You may be spending the most in the utilities and the clothing. Because those two things is where the most expenses often go. Many folks spend here and end up getting into the debt.

Like some people are shopaholic where they buy the clothing and forget it and keep buying as a means for the distraction. You can see that utilities are some of the things often ignored too or over purchased sometimes.

Your personal finance plan has to take care of those things under consideration and plan the clothing and utility properly. This is what most of the people have to plan and think of long term as well.

Transportation

Say you travel to the workplace or office or college. And that kind of sets you into the zone of the transportation. Spending on fuel has been increasing over a period of time. So the transportation is necessary evil expense.

You spend the money to travel and that is not always going to recover. You have to plan for this money and plan it properly. So make sure to use the right transportation and think of your things properly there as well.

What do you thin? What are your necessities in life? When it comes to planning your finances, how do you think of the necessities and the long term plan?

How do you plan those and how do you take care of those things in your life?